On July 1st, the Ripple DLT giant withdrew another 1 billion XRP tokens from escrow.
Ripple Releases Massive XRP Every 1st Day of Each Month
These massive XRP releases have been programmed to take place on the first day of each month for several years in a row.
Even in the legal dispute with the US security regulator, the Decacorn blockchain continues to do so.
At the same time, the seventh-largest cryptocurrency, XRP, has yet to recover from falling below the $1 level and is trading at $0.6615 at the time of writing.
500 Million XRP Transfer Was Done Twice
As July 1st arrived, the San Francisco-based blockchain giant unlocked another 1 billion cryptocurrencies associated with it. This equates to more than $704 million as legal tender.
Ripple has released its regular 1,000,000,000 XRP through two 500 million transfers each time. Usually, around 80% of this staggering amount of cryptocurrency is in custody (800 million) while the rest is sent to the cryptocurrency exchange to support the liquidity of XRP, for the company’s operating expenses and financial institutions cooperate with it.
XRP Transfer. Source Twitter
Cooperation agreements between Ripple and banks, payment companies and other institutions (more than 350 of them) usually require that they use Ripple’s payment network RippleNet and XRP tokens.
In the past, many in the crypto community accused Ripple of preventing an increase in XRP prices due to the 1 billion XRP being regularly published. A petition was initiated on the change.org portal asking Ripple to stop placing large quantities of XRP on the market.
However, this attitude has changed over time as it is clear that the price of the token (ranked 3rd in the top ten tokens a few years ago) is not influenced by the tokens unlocked from the escrow account each month on Impact.
Ripple Continues to Release XRP from the Escrow Account
The US Securities and Exchange Commission has filed a lawsuit against Ripple Labs and its two best-known executives, Chris Larsen (co-founder and former CEO) and Bradley Garlinghouse (current CEO).
The US Securities and Exchange Commission accused the company and two executives of selling unregistered securities (XRP) to institutional investors since 2013, making more than $1.3 billion in those sales.
Nonetheless, Ripple continues to release XRP from the escrow account and send some of it to financial institutions that partner with Ripple and use the blockchain technology it provides.